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ZEEHAN – Tin
(Gippsland 40%)
The Zeehan tin (Sn) deposit is located within a major tin province in the northwest of Tasmania approximately 15km from the large Renison tin deposit. Tin mineralization occurs as cassiterite and stannite in four deposits; Queen Hill, Severn, Montana and Golf Course.
Past drilling totalling 23,000m has established the presence of a substantial tin resource. The Severn deposit, the largest of the four, is located approximately 120m below the surface and is considered to be open at depth. To a depth of 500m below surface, the inferred resources include 5.1Mt at 0.6% Sn within the 1% mineralised envelope. At Queen Hill the mineralization outcrops on a hill approximately 300m due west of the Severn deposit and contains indicated resources of 1.8Mt at 0.82% Sn. The mineralisation includes minor amounts of copper, lead, zinc and silver.
The Zeehan deposit is held in the form of a Retention Licence number 5/1997 which is in good standing with the Department of Infrastructure, Energy and Resources – Mineral Resources of Tasmanian.
Lens |
Category |
Tonnes (M) |
Sn (%) |
Total mineralised Envelope (0.1% Sn cut-off) |
Queen Hill |
Indicated |
1.8 |
0.82 |
Severn |
Inferred |
5.1 |
0.60 |
Montana |
Inferred |
0.4 |
1.22 |
Total/average |
|
7.3 |
0.69 |
Total mineralised Envelope (0.3% Sn cut-off) |
Queen Hill |
Indicated |
0.93 |
1.39 |
Severn |
Inferred |
2.37 |
1.11 |
Montana |
Inferred |
0.31 |
1.45 |
Total/average |
|
3.61 |
1.21 |
Gippsland holds a 40% free-carried interest in the Zeehan properties with joint venture partner Stellar Resources Limited (ASX: “SRZ”). Under the terms of the Joint Venture Agreement, which is subject to a number of conditions precedent, Stellar Resources has the right to increase its Zeehan ownership to 70%. The conditions precedent include the requirement of Stellar Resources to:
- 1. complete a comprehensive feasibility study recommending that commercial development be undertaken with a view to undertaking mining operations and containing all necessary supporting reports and data including prepared geological and metallurgical, financing and marketing studies ("Studies"); coupled with
- 2. a written commitment based upon the Studies by a corporation, institution or bank acceptable to Gippsland and Stellar Resources to lend not less than one half of all costs to be met by Gippsland for the commercial development of the project up to the date of commencement of commercial production.
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